Key Points
- US Bitcoin ETFs witness significant net outflows due to concerns over Trump’s proposed crypto reserve plan.
- Ethereum ETFs reverse to net inflows, ending an eight-day streak of outflows.
The net outflows of Bitcoin exchange-traded funds (ETFs) in the US nearly doubled recently. This was triggered by market experts expressing apprehension over the crypto reserve plan proposed by US President Donald Trump.
Data from SoSoValue shows that the 12 Bitcoin ETFs recorded $143.43 million in net outflows on March 4. This was almost twice the net inflows of the previous day, which stood at $74.19 million.
Performance of Various ETFs
FBTC from Fidelity and ARKB from ARK 21Shares recorded outflows of $46.08 million and $43.92 million, respectively. Franklin Templeton’s EZBC followed with net redemptions of $35.71 million. Other Bitcoin ETFs contributing to the negative momentum included BITB from Bitwise, BTCO from Invesco Galaxy, and BTCW from WisdomTree, with outflows of $23.96 million, $16.47 million, and $13.07 million, respectively.
Contrarily, Grayscale’s mini Bitcoin Trust recorded a net inflow of $35.77 million, helping to offset some of the day’s outflows. The remaining five Bitcoin ETFs saw no inflows or outflows. These investment products had a daily trading volume of $4.55 billion on March 4, while total net inflows since their launch stood at $36.72 billion.
The nine Ethereum ETFs, on the other hand, shifted back to net inflows on March 4, with $14.58 million entering the funds. This ended an eight-day streak of outflows.
Market Reaction to Trump’s Crypto Reserve Plan
The surge in Bitcoin ETF outflows coincided with market reactions to Trump’s announcement regarding the creation of a U.S. Crypto Strategic Reserve. The proposed reserve would include a mix of crypto assets, primarily Bitcoin and Ethereum, with the goal of positioning the U.S. as the “Crypto Capital of the World.”
However, the plan has faced significant pushback from the crypto community. Critics argue that it contradicts Bitcoin’s fundamental principle of decentralization, raising concerns that a currency designed to be free from government control could now be influenced by U.S. policies.
Anthony Pompliano, CEO of Professional Capital Management and a major crypto investor, expressed his opposition. He described the plan as a mistake the U.S. will regret.
Bitcoin, which surged 11% to an intraday high of $94,770 on Monday, March 3, retraced 13.8% to trade at $81,700 the following day. This was due to investors adopting a risk-off stance amid escalating trade tensions and concerns over the feasibility of the strategic reserve plan. Ethereum also declined, dropping 19% from its recent high to $2,055 on March 4. However, both crypto assets have since recovered, with Bitcoin (BTC) up 3.6% over the past day, trading at $87,163, and Ethereum (ETH) rising 3.6% to $2,180.
Bitcoin’s Struggles in 2025
Uldis Teraudklans, chief revenue officer at Paybis, highlighted Bitcoin’s struggles this year. He noted that Bitcoin’s price has dropped as much as 11.47% year-to-date, whereas gold, facing similar economic uncertainty, has gained 10.65% over the same period.
Referring to a Bank of America survey, which found that 58% of fund managers still view gold as a reliable store of value—especially in case of a trade war—while only 3% trust Bitcoin, Teraudklans remarked that “this year, Bitcoin has proven more reactive to macroeconomic trends, including trade wars and interest rate fluctuations.”
On Bitcoin’s long-term role, Teraudklans stated, “Bitcoin has never been a safe-haven asset—only an aspirational one.” He acknowledged that every market cycle reignites debates about Bitcoin’s viability as a hedge but emphasized that “Bitcoin has consistently been a risk asset, following a long-term trajectory toward becoming a safe-haven, risk-off asset.”
